Japan Funds Assam’s Bamboo Biofuel Refinery
Japan will provide about ¥60 billion (around $408 million) in public and private sector funding for a bamboo-based biofuel project in India’s northeast. The Japan Bank for International Cooperation (JBIC) will lead the financing with about $244 million, supported by private lenders. This represents Japan’s largest clean energy investment in the region.
Assam Bioethanol Plant
The investment will be channelled through Power Finance Corporation (PFC) to Assam Bio Ethanol Private Limited (ABEPL), which is setting up the refinery in Golaghat, Assam. Once completed, the plant is expected to produce 49,000 tonnes of bioethanol annually, along with 11,000 tonnes of acetic acid and 19,000 tonnes of furfural. Residual biomass will be used to generate electricity, ensuring a zero-waste system.
Strategic and Environmental Benefits
The project directly supports India’s E20 programme, which targets 20% ethanol blending in petrol by 2025. It also aligns with Japan’s clean energy and climate goals, highlighting stronger bilateral cooperation. Additionally, the bamboo-based initiative will promote rural development in Assam by supporting local farmers and creating new livelihood opportunities.
